News: Salaries for IT engineers shoot up by 40%

Salaries for IT engineers shoot up by 40%

Fueled by the demands of digital technologies, salaries for IT engineers have risen by as much as 40 percent.

Driven by rising global demand for solutions in cloud computing, data analytics, and digital technologies, IT engineers have experienced a salary surge of as much as 40 percent. According to headhunters, the trend of higher salary increase IT engineers, constituting 40-45 percent of the workforce will likely continue as most firms see faster growth in the share of their digital business.

Kris Lakshmikanth, Founder of Head Hunters India, shared in media saying his company has seen up to 35-40 percent increase in salaries when these people, with up to seven years of experience, have changed jobs. He also shares that, "However, the attrition rate also includes a large number of employees being let go.”

As earlier reported in People Matters, except Tata Consultancy Services Ltd (TCS), all major IT firms reported higher attrition rates of 17-22% during the April-June quarter. Infosys, Cognizant and Wipro ’s attrition rates were recorded at 23%, 22.6%, and 17.7%, respectively, at the end of the June quarter. Accenture Plc, which follows a September-August fiscal year, reported 18% attrition in the June-August period.

It is also reported that Indian IT firms are looking to hire engineers from second or third-rung colleges to offset the increase in the salary bill. According to a survey, IT firms have increased the intake from non-top 100 colleges from 56% in 2018 versus 45% in 2016.

Author

Anushree is a Senior Associate- Content at People Matters.
She has done her MBA in Human Resource Development from Delhi School of Economics.
You can reach her at anushree.sharma@peoplematters.in
linkedin.com/in/09anushree
twitter: @AnushreeS09

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The Fourth Industrial Revolution is ushering in cyber-physical systems involving entirely new capabilities for people and machines. Jobs are changing and new jobs are emerging that we couldn’t have imagined just a few years ago. Workflows are changing. New skills are emerging, and old ones are being cast aside. But are we really ready for this new world order?